The Euphoria DAX40 Continues or is a Change Coming?
This day, the DAX40 has started higher, recovering the ground lost in recent days. Expectations for the euro zone are upbeat, especially for inflation, trade balances and retail sales data, with expectations for an improvement in German earnings standing out. Sales in the Italian market will be key for the Milan index, looking to close the week in positive, if the forecast is met.
Unlike the beginning of this week, marked by pullbacks due to massive selling and position closures, inflation data has prompted the European Central Bank last week to continue with its cutting projection, seeking confirmation in the current data. In this way, it is seeking to cut the phenomenon of the economic cycle movement in which we find ourselves.
In the United States, the Fed's decisions have influenced the commodities market and the EURUSD cross, doing more or less as expected this week.
Regarding the DAX40, looking at its price construction, the index price has been in a sideways range since the end of February, reaching highs yesterday at midday. Today, it has risen by 0.68%, suggesting a possible bullish continuation if the data is favorable and similar to expectations trying to find the 18,500 points. Otherwise, a rebound towards 17,612 points could be generated, remaining in the current range.
The RSI shows an overbought level of 66.62%, with overall market sentiment predominantly bull driven. The current price bell shows a quadruple bell with price dominance in the area of 17,706 points. These indicators suggest a possible reversal to the downside which could signal a continuation of the price zone where it has held since late March. It is worth keeping an eye on the day's news for further developments.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Unlike the beginning of this week, marked by pullbacks due to massive selling and position closures, inflation data has prompted the European Central Bank last week to continue with its cutting projection, seeking confirmation in the current data. In this way, it is seeking to cut the phenomenon of the economic cycle movement in which we find ourselves.
In the United States, the Fed's decisions have influenced the commodities market and the EURUSD cross, doing more or less as expected this week.
Regarding the DAX40, looking at its price construction, the index price has been in a sideways range since the end of February, reaching highs yesterday at midday. Today, it has risen by 0.68%, suggesting a possible bullish continuation if the data is favorable and similar to expectations trying to find the 18,500 points. Otherwise, a rebound towards 17,612 points could be generated, remaining in the current range.
The RSI shows an overbought level of 66.62%, with overall market sentiment predominantly bull driven. The current price bell shows a quadruple bell with price dominance in the area of 17,706 points. These indicators suggest a possible reversal to the downside which could signal a continuation of the price zone where it has held since late March. It is worth keeping an eye on the day's news for further developments.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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